Solidarity tax (ISO) and local input VAT for Decree 29-89 companies

Under article 12 bis, subparagraph g) of Decree 29-89, local purchases of inputs and services for the qualified activity (apparel/textiles and ICT) are not subject to VAT, and article 36 ter extends VAT-free treatment to co-exporters and local inputs. Dossier 13 (the garment-factory manual), verified against the legal text, notes that a company enjoying the Decree 29-89 income tax (ISR) exemption does not pay the solidarity tax (ISO) either. The suspension of import taxes on inputs lasts one year, extendable only once according to dossier 13 (art. 12), although the articles extracted in this dossier do not contain the extension explicitly.

The research is written in English; quoted figures, source names and the titles of legal instruments stay in the language their source published them in.